About Vc Expertise I am capable of answering Logical and Analytical questions.I am from a Software Company and so have to look for patterns and solve Complex queries.As I`m a Chess fanatic,I am always 3 steps ahead.
If you have a question , ask for Vc the man with the little very very small grey cells.
Expert: Vc Date: 5/29/2004 Subject: Probability Paradox
Question Could you please explain the solution to this problem? I am completely stumped! Below is the question:
Perhaps the most famous of all probability paradoxes is the "St. Petersburg paradox", originally proposed in 173 by Nicolaus Bernoulli and later modified by his nephew Daniel for inclusion in the Transactions of the St. Petersburg Academy. Here it is.
A fair coin is to be tossed until heads comes up. If heads appear on the first toss I pay you $1. If heads first appear on the second toss I pay you $2. If heads first appear on the third toss I pay you $4. And so on. Each time a tail appears I hae to toss aain and double my offer until a head finally appears.
Each time we play the game you have to pay me a certain amount at the start for the privilege of playing. How much should this amount be if the wager is to be a fair bet?
